The home appliances market, which is currently being dominated by Haier Thermocool, LG and a few others may witness a new dawn with the decision of Japan’s leading home appliances manufacturers, BOSCH, to explore the market.
The Nigerian home appliances market has continued to soar in the last few years, especially since 1999, when the country started experiencing an uninterrupted civil rule, which liberalised the business community, thereby encouraged more investors to come in.
Though the poor power supply still remains a big challenge, the population of the country and easy entry has boosted the electronic market as manufacturers of mobile telephoning devices and home appliances have since realised the potential of the Nigerian market.
This explained why some old brands that had almost gone into extinction in the market suddenly reappeared, while many new ones have also found their ways into the market. Today, the players are all jostling for substantial shares of the market. However, each of the brands has strength in different areas. For instance, while Samsung and LG seem to be leading in the distribution of flat screen televisions, Panasonic maintains a convenient lead in air-conditioning while Haier Thermocool is showing its strength in the home appliances segment.
In what looked like a fresh way to puncture the leadership of the existing players, Bosch home appliances, a German brand has announced its collaboration with Pedini Nigeria to explore the market. Though this is not the first time the brand name will be coming into the market, it is the first attempt to operate big in the home appliances segment.
The marriage between the global kitchen manufacturing company with over 300 showrooms in 25 countries and a Nigerian company that understands the local terrain may be the strategy needed to control the entire market. At the opening of a showroom in Lagos recently, the promoters of BOSCH brand in Nigeria disclosed their plan to spread to all the major markets in Nigeria.
Having used competitive price and technology to position its products globally for over a century, the company stated that the same tools will be deplored in Nigeria to connect relevant patrons.
However, considering the population of the market and attitude of Nigerians toward high quality products, the new entrant is confident of success in the market. To this end, they have revealed their plan to open about 100 showrooms across Nigeria over the next three years.
Speaking to newsmen after the inauguration of the Victoria Island, Lagos, showroom, recently, the Chief Executive Officer of Pedini Nigeria Limited, Mr. Chiedu Nwokolo expressed his willingness to work with the global company, which he pointed out, has the strongest brand names in the continent in terms of durability and technology.
Speaking on factors that will make it easy for the partners to compete well with the existing names in the market, Nwokolo referred to the fact that BOSCH has the right strategies in the area of pricing and quality offering. He also identified the growing middle class in the country as a factor that will help the brand growth.
The CEO went further by pointing out that the new entrant would leverage after sales service to deliver value to its customers. “After sales are one of the cornerstones through which we will bond with our consumers. We intend to service the needs of our customers with any challenge within 24 hours of complaining. It is easy to sell a product but when it comes to after sales some don’t manage it well but we are here to change that culture. We will do our best, even if we lose money to ensure we satisfy our customers,” he said.
Earlier, the Chief Executive Officer of Turkey and Head of Region for Middle East and Africa, Mr. Norbert Klein, had told newsmen that the promoters of the company believed in the market and would do everything humanly possible to satisfy their patrons.
He said: “We see in Nigeria a sophisticated market with appreciative population and we found Pedini as a very good partner because it is already in Kitchen business which fits perfectly with us because good quality kitchen will meet good home appliances.”
“In the past we have tried as it is not easy to find a good partner. But now we are sure that this market will develop quite fast, he said describing Bosch Group as a worldwide and foremost in household appliances with many brands under the group. “The group has a turnover of about 13 billion Euros and our target is to get a good footprint in Africa. We have a good market share in S/Africa and Morocco and we are sure to have a good market share in Nigeria.”
Another member of the board of management of Bosch, Michaell Schollhorn, who also spoke at the unveiling ceremony, explained that Bosch is a global company that employs about 400,000 people and makes about 70 billion euros in revenue and the company is globally active in 50 countries he said.
“Our largest market is China that has surpassed Germany which traditionally used to our home market and now the number three is US in Africa we are expecting double digit growth plans in coming years.
Nigeria has the big market size with large population. The country has much potential,” he said.